Following Netflix's (NFLX) example, Disney (DIS) will be cracking down on password sharing for its Disney+, Hulu, and ESPN+ streaming services starting on March 14, 2024.

Yahoo Finance Media Reporter Alexandra Canal breaks down the details.

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Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

SEANA SMITH: And there's also some drama, I think, surrounding some subscribers too because one of the priorities, like, you just laid out from Peltz, is he wants Disney to cut some of the losses that they have seen in their streaming business.

We also just got some news out here yesterday about Hulu now cracking down on password sharing.

ALEXANDRA CANAL: So Disney updating those subscriber agreements for Hulu, which Bob Iger did hint at earlier this summer. He said, sometime in 2024, the password sharing crackdown is coming for our streaming services.

So the changes are going to go into effect on March 14. So if you are sharing a Hulu account, expect to be hit with that password crackdown, expect to possibly, probably, pay up for your own subscription service.

Now, Bob Iger has said that the password sharers were, quote, "significant." So this is something that-- he's taking a playbook out from Netflix. We've seen Netflix be pretty successful with this rollout. It's another revenue initiative. I think it's going to come for all the streaming services at one point or another. But Hulu, I'm sorry.

SEANA SMITH: It's probably a pretty solid bet there, given the fact like you just said how successful it has been or worked out in Netflix's favor in terms of revenue-wise. All right. Ali, thank you.

ALEXANDRA CANAL: Thank you.